unpaid invoices issues - need advices on what to do next

**Wanderer** · 25 March 2011, 00:45

Originally posted by Lasentence View Post

I am not sure what my options are (legal firm, log complain online myself, debt recovery, ..) so any advice would be very much appreciated.

Hi and welcome.

Have a read of this thread (though I'm sure there are lots more):

Originally posted by Lasentence View Post

- I worked without a signed agreement : I know this is very stupid, but well... when you need money and under pressure you don't always have the choice. That said, I have emails showing that my client agreed to the project deliverables and agreed to sign the agreement (he just never sent the signed one, i am kind of hoping that the intend to come to an agreement will do). I can also show that I have chased him several times

OK, did you have a written agreement but it just wasn't signed? If a contract is offered, you start work and the client accepts this (eg, you on their site) then they have accepted the agreement. Proceed as if you had both had signed the agreement.

Originally posted by Lasentence View Post

- all deliverables were sent to my client, but I kept the supporting files (I saw this coming so did not want to give everything away - the supporting files were not part of the agreement), of couse I would not have any problem giving this to my client if he fulfils his obligation. he i snow using this as a reason for non paying.. but if I send this over, what am I left with?

Difficult to know how to proceed.

1. Speak to the client and get a written agreement that you will be paid the sum of £xxx for the delivery of the supporting files which you are holding.

2. If you have done a substantial amount of the job for the client and you don't think they will pay up then you may want to tell the client you are holding the files as a Lien and you would like an agreement of the full amount to be paid, plus an interim payment, followed by a final payment when you hand the files over.

**NotAllThere** · 25 March 2011, 08:06

How much is the debt - if not too much, then you can take the small claims route.

Does the client have the money to pay you? Are they a small business themselves? Pay on Time is a good starting point.

If they knew they didn't have the money to pay you before engaging you, then you might be able to recover your money from the directors personally.

The process is: Give time to pay. Give opportunity to pay. Suggest ways of helping them pay (spreading out payments, for example.) Threaten legal action. Take legal action. Send in the bailiffs.

**Lasentence** · 25 March 2011, 17:23

Thanks for your advices guys

@wanderer, thanks for the link, I will read this carefully. That is what I thought to regarding the "intend to sign the agreement and validation of the scope of work"
I actually tried to do this half half deal, but he then tried to trick me by asking me to send the file while "payment is under way"... I obviously said no way and communication was then cut

@notallthere : its not big money (a few 000's) so I could use the on-line small claim route. They have all the money they need since they get paid by their own client, it is just a matter of ethics really, I am now at the stage of threat of legal action...

where can I get support? shall i contact a sollicitor? will they get paid from me or the other party?

Thanks again!

**Wanderer** · 25 March 2011, 18:14

Originally posted by Lasentence View Post

where can I get support? shall i contact a sollicitor? will they get paid from me or the other party?

Don't got spending a lot of money on a solicitor, there are a lot of them out there who will send a few official sounding threatening letters on their headed paper for about £5. Do a search of this forum (can't remember where it was) but someone mentioned a solicitor who will send a threatening sounding "Letter before Action" to the client which will hopefully scare them into paying.

**NotAllThere** · 25 March 2011, 18:29

The process of going throught the small claims courts is relatively straightforward - you can even start the proceedings online.

**Lasentence** · 26 March 2011, 07:26

yes, I have already done this with my landlord a few years ago, worked pretty well!
the letter idea is brilliant! I will wait until the end of the payment term, send legal threat and the letter from the solicitor... if still nothing then small claims... (with or without solicitor..not sure...)

Thanks again for your help

**NotAllThere** · 26 March 2011, 07:40

It'll take longer, but will help your case, if you go through a dunning procedure like this.

Two weeks after the invoice was due to be paid, send a letter, reminding the client that the invoice is over due, and that you expect payment with seven days. If they have difficulty paying, they should contact you to discuss resolution. Say that, reluctantly, you've had to add an admin charge (as provided for under the legislation - see Pay on Time) and interest (at the statutory rate). Include these in the new calculation of what is owed.

If no payment is received on the new due date, wait another week, and send a letter, asking for immediate payment. Again, ask them to contact you if they're having difficulties, and remind them that interest continues to accrue.

If no payment is received within seven days, send a FINAL DEMAND for immediate payment. "If you ignore this letter, legal action will be taken". Reference the outstanding amount, interest and admin fee.

If no payment is received with seven days, you could try the solicitor letter, wait another seven days, then start legal proceedings. Myself, I'd skip this step, and go straight to initiating the small claims court. I wouldn't use a solicitor for that either, as the process really is straightforward.

Get the company directors home addresses from companies house (small fee - if you're a PCG member, I think you get a reduction), and send copies of all letters, to all the directors.

The reason you go through all this palaver, is that when it comes before the judge, you've shown that you've behaved entirely reasonably.

unpaid invoices issues - need advices on what to do next